New customs values of lead acid batteries fixed

To check massive underinvoicing at import stage, collectors of customs would assess customs duty at the import of lead acid batteries applying anew the customs values of $2.39 per kg or $0.68 per kg, depending on the specification of the imported good. It is learnt on Thursday that Directorate General of Customs Valuation Karachi has issued new customs values on the import of lead acid batteries for accurate assessment of customs duty due to underinvoicing of the said item.
Sources told Business Recorder that the directorate has determined Customs Values of lead acid batteries under section 25-A of the Customs Act, 1969. A reference was received from erstwhile Model Customs Collectorate (PaCCS), Karachi regarding under invoicing on import of Lead Acid Batteries. This prompted an exercise to determine the customs values of the subject goods under Section 25A of the Customs Act, 1969.
As far as methodology adopted to determine customs values is concerned, the valuation methods given in Section 25 of the Customs Act, 1969 were followed. Transactional value method provided in Section 25(1) was found inapplicable because requisite information was not available. Identical/similar goods value methods provided in Sub-Sections (5) & (6) of Section 25 ibid were also not found applicable due to unreliable and variable values. Market enquiry as envisaged under Sub-Section (7) of Section 25 of the Customs Act, 1969 was conducted. Consequently, Section 25(7) of the Customs Act was applied to determine Customs value in subject case read with Section 25(9) ibid, sources said. Stakeholders' participation in determination of Custom values meetings were convened with stakeholders. However, no one attended the meeting.
In cases where declared values are higher than the Customs value determined in the Ruling, the assessing officers shall apply those values in terms of Sub-Section (1) of Section 25 of the Customs Act 1969. In case of consignments imported by air, the assessing officer shall take into account the differential between air and sea freight while applying the Customs values determined in this ruling.
The values determined vide this Ruling shall be the applicable Customs value for assessment of subject imported goods until and unless it is rescinded or revised by the competent authority in terms of sub-sections (1) or (3) of Section 25 of the Customs Act, 1969. Review of the value determined vide this Valuation Ruling: A review petition may be filed against the Ruling, as provided under Section 25-D of the Customs Act, 1969, within 30 days from the date of issue, before the Director General, Directorate General of Customs Valuation, Karachi. The Collectors of Customs may ensure that the customs values given in the ruling are applied at the import stage, they added.